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The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. If you are an independent contractor, then you are self-employed.
Yes, in some cases individuals can legitimately be self-employed and only work for one company. For example, if they are just starting out as a freelancer and are searching for new clients.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.
Freelancers can be self-employed in the sense that they are setting their own rates and hours, but freelancing is, by definition, taking on work from someone else. You sign contracts and accept the terms that various companies offer you.
Subcontractor vs Independent contractor is a difference in an employment relationship with a laborer. Independent contractors are employed and paid directly by the employer while subcontractors are employed by an independent contractor and are paid by them.
If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed. For more information on your tax obligations if you are self-employed (an independent contractor), see our Self-Employed Individuals Tax Center.
Independent contractors and subcontractors are both considered self-employed by the IRS. Both are responsible for making quarterly tax payments including self-employment tax.
The law does not require you to complete a contract with your self-employed or freelance workers - a verbal contract can exist even when there is nothing in writing.
Contractors can also be self-employed, but they perform tasks on a contractual basis, rather than selling any products or rolling, bookable services. For example, a plumber would work for a client according to an agreed, one-off contract.
Simply put, being an independent contractor is one way to be self-employed. Being self-employed means that you earn money but don't work as an employee for someone else.